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Indiana security deposit law
Short answer: An Indiana landlord has 45 days after the rental agreement ends and the tenant moves out to return the deposit, minus allowed deductions, with an itemized written notice. The landlord isn't liable until the tenant gives a mailing address in writing. State law sets no limit on the deposit amount.
| Deadline to return the deposit | 45 days after the rental agreement ends and the tenant hands over possession. The clock effectively waits on the tenant giving a mailing address in writing. |
|---|---|
| Limit on how much a landlord can charge | No limit in state law. |
| Itemized list of deductions | Yes. A written, itemized list of damages claimed, with the estimated repair cost for each item, mailed with a check or money order for the balance. |
| Interest on the deposit | Not required by state law. |
| Penalty if the landlord breaks the rules | A landlord who doesn't return the deposit properly owes all of the deposit due plus reasonable attorney's fees. Skipping the itemized damage list makes the landlord liable for the amount withheld plus attorney's fees and court costs. |
| What the tenant has to do | Give the landlord a mailing address in writing; the landlord isn't liable until you do. You can't use the deposit as rent unless agreed. |
| The law | Indiana Code Sections 32-31-3-12 to 32-31-3-16 (text checked via FindLaw's copy of the code, current through January 1, 2026) |
Official law: Indiana Code Sections 32-31-3-12 to 32-31-3-16 (text checked via FindLaw's copy of the code, current through January 1, 2026). Checked against the statute on 2026-11-04.
Good to know
- Deductions are limited to unpaid rent, damage from the tenant breaking the law or the lease, and unpaid utility or sewer charges the tenant owed under the lease.
Tips for landlords
- Do a written move-in inspection and have the tenant sign it. Take dated photos of every room, including inside appliances and closets.
- Collect the tenant's forwarding address in writing at move-out.
- Put the itemized list and the refund in the mail well before the deadline, and keep proof of mailing.
- Normal wear and tear (faded paint, light carpet wear, small nail holes) usually can't be charged. Damage beyond that can.
Tips for tenants
- Take your own dated photos and video on move-in day and move-out day.
- Give your landlord your forwarding address in writing, and keep a copy.
- If the deadline passes, send a written demand letter that cites the law above before going to small claims court.
Common questions
How long does a landlord have to return a security deposit in Indiana?
45 days after the rental agreement ends and the tenant hands over possession. The clock effectively waits on the tenant giving a mailing address in writing.
Is there a limit on security deposits in Indiana?
No limit in state law.
Does a landlord in Indiana have to itemize deductions?
Yes. A written, itemized list of damages claimed, with the estimated repair cost for each item, mailed with a check or money order for the balance.